Rethinking REI Strategy

Rethinking REI Strategy

Investor · Wakefield, MA · Member since 2019 · 31 posts · 73 votes

The events of the past several months have really made me consider whether or not it's worth owning investment properties in certain states (I own four units in MA). It's not just the current laws and regulations. I've begun to notice a significant amount of open hostility towards landlords and pro-business attitudes from people to the point that I don't feel comfortable telling friends/co-workers that I am a landlord. At the same time, several large companies have announced moving to states like Colorado, Texas, and Florida because of their business-friendly laws and attitudes. With them will come jobs and people looking for places to live. In addition those states seem to be more landlord-friendly as well.

Am I the only person who is considering selling off properties from places like MA and other not-so-landlord/business-friendly states and moving investment dollars (and myself, TBH) elsewhere? Am I crazy?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

I wouldn't stop investing but I would carefully consider where you are putting your money. I honestly can't believe people are still buying property in California, Seattle, or New York City. It's unbelievable the way politicians are taking away property rights and treating Tenants like victims.

The DIY Landlord Book4.7248 Reviews
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  • Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    You're definitely not crazy. I work with a lot of out of state clients and regularly see people doing 1031 exchanges to reallocate their investment funds to investor friendly states after selling properties in "unfriendly" states OR in areas where they've had crazy appreciation. Some of these areas have made it really difficult for small landlords to justify buying or keeping investment property there. 

  • Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    5y

    @Jennifer S. Welcome to the great State of TEXAS - your future (to be found) home of the Free - because of the Brave! The only requirement is to not bring MA politics along with you. 

    Even with our High Property taxes you'll probably be money ahead selling your higher priced MA properties and reinvesting in Texas.

    Let me know if I can answer any questions. 

  • Real Estate Agent · San Antonio, TX · Member since 2020 · 5 posts · 0 votes
    5y

    Hey Jennifer! I hear you, I work in real estate sales with investors here in San Antonio, "landlord" is becoming a less popular term for sure.

    Not sure if it has to do with younger millennial renters or what, but I've found that when you tell people you "own properties" instead, it tends to be a favorable label. Someone explain it to me please haha!

    But if you feel that your money would be better invested in an area that had businesses fleeing to it, that would be Texas.

    I hope this helps.

    Kyle Lancaster

    eXp Realty

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I wouldn't stop investing but I would carefully consider where you are putting your money. I honestly can't believe people are still buying property in California, Seattle, or New York City. It's unbelievable the way politicians are taking away property rights and treating Tenants like victims.

    The DIY Landlord Book4.7248 Reviews
  • Member since 2020 · 12 posts · 4 votes
    5y

    @Nathan G. Hi Nathan first thing first ,thank you for bringing this topic up ,your not alone .I feel the same as you do I’m currently selling one property here in Jersey looking too invest in Florida or considering any landlord friendly state best of luck

  • Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    5y
    Originally posted by @Jim Cummings:

    @Jennifer S. Welcome to the great State of TEXAS - your future (to be found) home of the Free - because of the Brave! The only requirement is to not bring MA politics along with you. 

    Even with our High Property taxes you'll probably be money ahead selling your higher priced MA properties and reinvesting in Texas.

    Let me know if I can answer any questions. 

     Unfortunately I have found this not to be the case. We have many transplants here, they are very active in local affairs and work to implement the same policies that they are running away from... blows my mind. 

  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    5y

    @Jennifer S. just to get more specific, have you had any specific issues?  Are your properties still cash flowing?  Do you have high quality tenants?

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